Mitzi Romiti
Associate Broker
e-PRO, GRI,
Direct: 703-241-7935
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Working with
The increasing popularity of buyer representation has increased the number of transactions where a REALTORŪ might have overlapping brokerage relationships. This happens when a buyer or tenant client of a real estate company wants to buy or rent one of that companies listings. Even if different REALTORSŪ are working with different clients, their dual loyalties are created by their company, which has contractual obligations to both clients.
In dealing with these situations, there are two ways for the transaction to proceed.
Option 1:
Standard dual representation
Virginia law allows a real estate firm or salesperson to represent both sides of a real estate transaction, as long as all the parties give consent. Because the company has a legal obligation to both parties, and may know confidential information about one party of value to the other party, there are limits on what the company or salesperson may do in dual representation situations.
The company or salesperson must not disclose information that is confidential or would create a negotiating advantage to the other client, such as whether the seller will take a lower price, or the buyer will pay a higher price. Generally, information about the motivations of the parties must also be kept confidential. In effect, dual representation limits the REALTORŪ to a neutral role.
Option 2:
Designated (dual) representation
If all the parties agree, a real estate company can designate one of its REALTORSŪ to represent the seller or landlord, and a second REALTORŪ to represent the buyer or tenant in the same transaction. A supervising broker will need to maintain the confidentiality of any client information, which could be of value in negotiations. The two designated representatives must not share confidential information with each other. When working with their individual clients, they are free to gather important information from outside sources, free to help with negotiations, and will be thinking first of their clients needs and wishes.
You are not required to agree to either of these dual representation situations. If you refuse dual agency or a designated representation relationship, the real estate licensee must choose which party to represent, and the other party is free to arrange other representation for that transaction.
If you have any questions about the preceding information about the Virginia law, I'll be happy to explain it more fully.
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